Tax Cut Extension for Middle-Class, Great Political Move – Bad Economics

 
 
 

Tax Cut Extension for Middle-Class, Great Political Move – Bad Economics

President Obama has made a political move by offering continuance of the Bush tax cuts for 98 percent of Americans while the tax cuts for the top two income brackets expires. I think it’s a smart move politically but I also believe that for us to continue those tax cuts is irresponsible as our nation continues to go deeper in dept.

Still, the move is a smart move when it comes to the politics of the moment. We all know that the GOP will go to fist city over tax cuts for the wealthy. It doesn’t matter that it’s only two percent of the population; Republicans like to call those wealthy guys the “Job Creators” Those  same “Job Creators” have been sitting on a couple of trillion dollars for a couple of years now, so it certainly isn’t because they have too little capital to create jobs, if that’s what they do.

I disagree with the concept that the wealthy, big corporations or even small businesses are job creators. The real job creators are the middle-class because it is they who we need to depend on to spur the economy and create jobs. Jobs are created because there is a demand for products and services, not because businesses are given even more tax cuts than they already have. A business or a corporation exists because there was a demand for a product that they were able to provide.

There is no better proof that tax cuts for the wealthy, or Reaganomics as we call it – don’t work, than the ten or eleven years that the Bush tax cuts have been active. Those tax cuts obviously didn’t work; hence the Great Recession.

As far as the current extension that Obama signed after the Republican election victory in 2010, it’s my belief that if we hadn’t extended those tax cuts, especially for the wealthy, we would be a lot further along on the recovery of our economy. Thanks to President Obama’s policies, certainly the economy is improving but moving way too slow of a pace.

I just believe Obama shouldn’t have gone along with Republicans after the 2010 election and extended the tax cuts, even if it meant tax cuts went up on everyone else. Sure, many Americans are hurting and the unemployment rate is still way too high but it’s going to take a real shared effort by all of us if we’re going to get this country back on its feet and back on top, which is where it belongs, not where China belongs.

So now Obama wants to use the tax cuts for a political tool; fine but there are some consequences. Sure it’s a great tool because it has the potential to force the Republicans into a corner. America is watching; if Republicans show that they’re not interested in keeping taxes low for the 98 percent of Americans that Obama’s proposal would cover, unless the top 2 percent is included, it could cost them dearly on Election Day.

Right now, Americans are starting to watch their Republican candidate, who is without a doubt, the ultimate poster boy for the top 2 percent. It also hasn’t been that long ago that we had the efforts of the Occupy Wall Street protest to make certain Americans are aware of the inequality of the wealthiest Americans and everyone else. Then we top that off with the fact that Republican lawmakers make it no secret that they’re in full support of big business and tax cuts for the wealthiest of Americans.

This collection of facts boils down to one basic fact; Republicans do not want to come off looking uncompromising and unwilling to work with the President on continuing those tax cuts, even at the exclusion of the wealthiest Americans. Their old rhetoric, “This is not the time to be raising taxes on the job creators” just is worn out on Americans who well know that those job creators are sitting on a ton of cash and they’re still not moving to create jobs.

Lastly, I say this as someone who enjoys a lower income, though I prefer not to reveal that here – believe me though; it’s low. My taxes being raised would not be a great thing for me now as it seems everything is going up in cost but I’m still being paid close to the same.

Still, I believe the Bush tax cuts need to expire. Though it goes against my self-interest, I just feel it’s my duty as an American to pay a little more to help this country get out of the hole that it’s in.

I realize there are families that are hurting and we should consider more financial help for those who are, but those of us who do have jobs and can afford it, should help in the recovery of this nation – but then so should the wealthy.

All in all I can’t blame Barack Obama; he knows there are still lots of folks who need help out there and most certainly he knows that it’s a smart political move.

I may disagree with the results but for me, President Obama will make up for that tax cut if he’s allowed to do what he wants to do in his second term which is by helping us move forward in America in everything from education to job growth; I believe Barack Obama is the man who can and will get the job done, and that’s with or without a willing congress.

The post Tax Cut Extension for Middle-Class, Great Political Move – Bad Economics appeared first on fidlertenplace.com.

Issue: 
 

Barnes & Noble